only answer questions d, e

Question 6 (20 points 16 1st April 2022, you note the quarterly stock price of security A as well as its half-yearly dividend. These data are presented in the following table: Trimester Dividend ($) Price of closing (5) 20 1st 2021 20 0.60 2nd 2021 3rd 2021 4th 2021 22 0.60 24.70 23,712 1st 2022 a) You want to estimate the performance of security A for the next quarter of 2022. For this purpose, you will use the quarterly returns achieved by this security in the recent past. You must therefore calculate the security's return for each of the quarters (the last 4) and then calculate the average return; this will be your estimate of the expected return, E (RA). (4 points) b) Based on your results for the previous sub-question, estimate the risk of security A. Risk is measured by the standard deviation of returns. (4 points) c) You intend to build a portfolio consisting of only 2 stocks. By proceeding as in the previous sub-question, you obtained for security B an average return, E (Rs), by 3%. Moreover, always from the returns of the last 4 quarters, you have estimated the risk of security B; you obtained: o (RE) - 5%. What should be the yield of your portfolio for the next quarter if you place 60% of your available savings in security A and the rest in security B. (4 points) d) You expect a correlation coefficient of 0.6 between the returns of security A and those of security B. Calculate the risk (standard deviation) of the portfolio suggested in the previous sub-question. (4 points) e) If the correlation between the returns of security A and those of security B was perfectly negative (PAB -1), it would be possible to build a portfolio composed solely of these 2 securities so that the risk of the portfolio is nil. What are the proportions (WA and WB) of this portfolio? (4 points)